Google Gets Another Upgrade

Another vote of confidence in Google’s (GOOG) business, this time from Barclays analyst Doug Anmuth, who raised his estimates for Google today and increased his price target to $575.

Why? In a note today, Anmuth explains:

“Improving macro conditions, a stronger ad market, & FX tailwinds” will likely produce “better than expected results” over the next few quarters.

“Checks” suggest improving pay-per-click ad business during Q3, especially retail and auto, and “we are more optimistic” on Q4.

As marketers focus on ROI, that’s good for Google and search advertising.

As a result, Anmuth raised 3Q estimates to +5.1% Q/Q net revenues, up from +4.4% Q/Q previously, and raised 2010 and 2011 estimates about 4-5% on “continued improvement in PPC,” along with margin expansion.

He adds that formal net neutrality rules, if adopted by the FCC, are good news for Google longer-term.

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